Dáil Éireann Debate, Tuesday - 23 July 2019
196. Deputy Thomas P. Broughan asked the Minister for Finance the estimated yield from the introduction of a climate action responsibility levy added to corporation tax of 1%, 3% and 5%, respectively; and if he will make a statement on the matter. [32926/19]
View answerThe trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5 per cent.
Some countries have a high headline rate of Corporation Tax, which is supplemented by a high number of tax reliefs which reduce the overall rate of tax paid. By contrast, the approach in Ireland is transparent: we have a competitive headline rate of Corporation Tax which is applied to a broad base.
Certainty with regard to the 12.5 per cent rate of Corporation Tax has been a key element of Ireland’s tax policy over the last two decades. Changing this rate or introducing a new levy on the profits of corporations would involve increased complexity and could significantly change the attractiveness of Ireland’s Corporation Tax offering.
It is therefore not possible to accurately predict the effect such a levy would have on the behaviour and decisions of large multinational companies. This uncertainty prevents a reliable estimate being made of any yield that might accrue to the Exchequer if such a levy were imposed on corporate profits.
